B&N Nook may suffer from higher prices

Now that consumers are anxiously anticipating the release of the Barnes & Noble Nook e-reader next month, the developing e-reader industry has yet another major contender.

The Amazon Kindle, which currently leads the market, will face stiff competition from the Nook, as the book chain will promote its device in stores across North America.

A recent editorial published on BetaNews indicates B&N hasn’t learned from past mistakes, and may lose out because of its higher prices on select e-books.  For example, Stephanie Meyer’s Twilight is available for $6.59 for the Kindle, but B&N charges $8.79 for the book.  Do Androids Dream of Electric by Philip K Dick is $8.38 from Amazon and $11.20 for B&N, with the trend continuing for other books.

There are a few cases, noted by BetaNews, in which Amazon and B&N have similar prices on titles, but most books searched for are cheaper through Amazon.

Sony has its own e-book reader that has been outclassed by the Kindle, with the Sony virtual book prices even higher than Amazon and B&N.

The overall cost of e-books has scared off some interested consumers, with e-books routinely priced higher than paperback books.  I expect lower prices at some point in early 2010, as publishers and manufacturers work together to promote the growing industry to consumers.

I’ve written about the Nook before, and think it’s a device with a lot of potential, but the higher priced books will hamper e-book industry growth.  Despite unlimited marketing potential by promoting the books through retail stores, the price of e-books simply needs to decrease.